Commercial Metals Co. (CMC), a leader in the manufacture of steel products, including rebar used in infrastructure construction reinforcement, has acquired Tensar International Corp. as part of CMC’s strategy to expand its leadership in construction solutions. Tensar International Corp. is a leader in geogrid engineered solutions for civil construction, and a portfolio company of Castle Harlan Inc.’s fund Castle Harlan Partners V, L.P. The transaction is valued at $550 million.
Until the companies complete the closing, Tensar and CMC will continue to operate as two separate and independent companies. After closing, CMC will publicize a more detailed go-forward plan to ensure a seamless transition.
“I’m enthusiastic about the opportunity for Tensar to join with CMC for expanded reach in the civil infrastructure market,” says Mike Lawrence, CEO of Tensar. “Both companies have a rich history of innovation, service and commitment to our customers’ success. Together we will be well-positioned to grow into key markets, leveraging forthcoming infrastructure spending as well as growing requirements for more sustainable solutions globally. This is an exciting change for employees and customers of both companies.”
CMC is an innovator in the adoption of new manufacturing techniques and technology that deliver more cost-effective, sustainable and resilient solutions to clients.
“This compelling acquisition advances CMC’s strategy to expand our leadership in construction reinforcement, with value-added products that complement our existing offering,” says Barbara R. Smith, chair of the board, as well as president and CEO, of CMC. “Tensar will create a powerful platform for incremental growth into complementary engineered products that target CMC’s largest core market, construction, serving end-use markets and customer segments where we have strong and existing relationships.”
“Today’s announcement is another exciting step in CMC’s strategic growth plan that will further enhance our organization,” says Smith. “We look forward to welcoming Tensar’s 650 worldwide employees to the CMC family.”
The transaction has been approved by the boards of directors of both CMC and Tensar. The closing of the transaction is expected to occur in a timely manner following customary regulatory review and subject to customary closing conditions. Morgan Stanley & Co. LLC is acting as financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to Castle Harlan and Tensar in connection with the transaction.